Term cover is available to NRIs living in the UAE; any medical examination is arranged by the insurer, and the method varies. Premiums are paid from an NRE or NRO account. Where the premium was paid in rupees, a claim — including a death claim to a nominee abroad — is paid only in rupees to the nominee's NRO account.
What it is
Term insurance pays a fixed sum to your nominee if you die within the policy term (say, until you are 65). There is no savings component, which is why ₹1 crore of cover costs a fraction of what an endowment plan with the same cover would. Indian insurers issue it to NRIs, with the sum assured and the claim in rupees.
Who it's for
Anyone whose income supports others: a spouse, children, parents, or a home loan. Cover is usually set at 10 to 15 times annual income, adjusted for existing assets and loans.
What it needs from abroad
A proposal form, income proof (overseas salary slips or bank statements are accepted), a medical where required, and premium from NRE or NRO. Some insurers want the medical done in India; others arrange it in the Gulf or by video. Residents of some countries pay a loading or are declined by certain insurers; the plate shows your country's position.
Risks and catches
Non-disclosure is the main reason claims are contested: declare health, smoking, occupation and travel honestly. Premiums are fixed for the term, so a policy bought at 30 is far cheaper than at 40. A claim is paid to your nominee's Indian account; make sure the nomination is current.
Tax, for an NRI
The claim is generally tax-free in India for the nominee. Premium deductions only matter if you have taxable income in India and compute it under the regime that allows them. Life insurance premiums for an individual are exempt from GST from 22 September 2025.
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